We've all been hearing about the significant uptick in materials and labor costs associated with construction over the last number of months, particularly lumber which has been the focus of many a meme. That spike is beginning to show up in the cost of medical office projects breaking ground in 2021.
Occupancy has remained stable throughout 2020 and into 2021, but quarterly absorption reflects some level of negative impact, although short in duration, in the third quarter of last year. While the average each quarter for absorption in the top 50 markets has been around 3.2 million square feet, in 3Q20 that total fell to just 800K. Interestingly, this impact shows to a greater extent in the largest 10 markets.
Despite all the difficulties of the pandemic in 2020, medical office transaction activity still kept pace with previous years. Total sales volume cleared $11.2B and these top buyers represented almost half (46%) of that total.
Revista has posted the 4Q20 MOB Sector Quarterly Brief. Available for a limited time this report provides an executive level overview of supply, demand and rent fundamentals for the aggregate top 50 metros as well as the top 10 markets ranked by total square feet (SF).
Revista has posted a research paper titled “2021 The Off Camus Debate”. The research piece outlines the movement of healthcare towards off campus medical office buildings and provides analysis on an off campus group of MOBs
Despite the challenges this year with COVID-19, medical office projects continue to break ground. Interestingly, the proportion of 3rd party developed projects starting is increasing as the year progresses.
The Medical Office Building (MOB) sector has shown its mettle through previous economic challenges. But with the onset of the Covid-19 pandemic and ensuing slowdown of elective surgeries and office visits many wondered if demand for MOB space would continue to move forward
In March, when most of the country shut down in order to slow the spread of COVID 19, when one needed to see the doctor, in many cases the only option was through a virtual visit. As of July, Telehealth was still representing 21% of all ambulatory visits. How will this affect physician and health system's ambulatory space needs? We asked in our October survey, and here is how you answered.
Late March through April saw the onset of the Covid-19 Pandemic which shutdown much of the US economy. The Physician Office and Medical Office Sectors, which had historically proved ultra-resilient to economic and other shocks was not immune to the pandemic related shutdowns.
Phoenix is an investor favorite for sure. While nationwide roughly 65% of medical office space is user owned, in Phoenix only 30% is user owned. A significant driver of this is how incredibly fast Phoenix is growing.